As developers of core HVAC struggle, new companies offer novel sensors
and controls to improve efficiencies in heating and cooling, which use
38% of energy in commercial buildings, says Lux Research

November 9, 2015

Sensing
and control start-ups are threatening incumbents in the heating,
ventilation, and air conditioning (HVAC) world, as core equipment
developers struggle with innovation and finances, according to Lux
Research. Just as in the building energy management systems (BEMS)
software space, start-ups are innovating faster and challenging large
building controls companies’ turf by installing their own connected
devices and offering services.

“Large building companies are coming under siege by nimble startups,”
said Alex Herceg, Lux Research Analyst and lead author of the report
titled, “Identifying Disruption in Advanced HVAC Technologies for
Commercial Buildings.”

“In the emerging landscape, large building equipment controls companies
must proactively partner with or acquire HVAC tech developers, while
utilities and telecom companies can leverage sensors and controls
companies to cross-sell services,” he added.

Lux Research analysts evaluated
emerging HVAC technologies and start-ups, rating them on the Lux
Innovation Grid. Among their findings:

Ventilation technologies set for strong growth. Companies
with enhanced ventilation technologies will see robust growth in the
near term. Regulatory pushes are helping generate market pull –
third-party certifications are growing at a 13% compound annual
growth rate (CAGR) globally.

Hardware-heavy offerings are becoming “servitized.” Many
start-ups have begun to bundle hardware into a service, ending
outdated energy performance contracting. Companies like Daintree
Networks and Entic are driving growth rates as high as 300%
year-over-year using this "servitized" approach.

Comprehensive offerings have an edge. Cyclon Controls,
Distech Controls, Enlighted, and Entic are among the “Dominant” HVAC
sensors and controls companies on the Lux Innovation Grid. All four
offer a full suite of sensing and controls products to help appeal
to customers looking for a complete solution.